On the previous post we have discussed Budgeting for Raw Materials Inventory, now let’s go on for Work-In-Process (WIP) Inventory. The inventory of goods actually in process of production between stocking points can be best estimated by applying standard turnover rates to budgeted production. This may be expressed either in units of production or dollars and may be calculated for individual processes and departments or for the factory as a whole. The former is more accurate. To illustrate this procedure, [...]